KIT: Traditional Indian medicine systems

Strategic tools for the practising manager

Medicine systems like ayurveda, yoga and naturopathy, unani, siddha and homeopathy (AYUSH) have long enjoyed acceptance among Indian communities. However, owing to inadequate scientific validation, they had not received due recognition in the past.

These Indian systems of medicine and homeopathy received a major boost about a decade ago when they were given an independent identity under the health and family welfare ministry. In 2003, the department was renamed AYUSH.

In the last five years, AYUSH has caught the attention of people like never before. The current market for AYUSH is estimated at Rs 11,500 crore and it is expected to reach Rs 16,200 crore by 2014, growing at 20 per cent annually. The various segments that constitute the market are drugs, over-the-counter (OTC) and wellness products, wellness/spa treatments and herbal extracts.

 

Of these various segments, OTC products (like digestives, health food, pain balms and so on) make up for 75 per cent of the market. However, wellness/spa is the fastest growing segment, and is expected to contribute to one-third of the AYUSH market by 2014. The hospital business has historically grown at 12 per cent a year and is expected to grow faster in future.